US producer prices fell in December for the third consecutive month, bringing a closely watched gauge of inflation to a rate more in line with pre-pandemic times.
Wholesale inflation as measured by the Producer Price Index rose 1% annually in December, up slightly from November’s revised 0.8% reading, according to data released Friday by the Bureau of Labor Statistics.
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PPI is a closely watched inflation gauge since it captures average price shifts before they reach consumers and serves as a potential signal for the prices consumers ultimately end up paying.
The economy is solved! Rejoice everyone! Don’t mind that we still can’t afford basic things, you don’t actually need them!
/s
Real wages increased in 2023.
I’m actually not sure what a “real wage” measures.
It’s wages measured against inflation, but inflation itself can be measured in different ways. Does it use the CPI? Cuz that doesn’t measure shrinkflation lol
Not to mention CPI calculation changes regularly
Also doesn’t measure substitutions, like choosing to buy a cheapo brand of the same product to save money.
Speaking of, in the age of mass surveillance and data collection I have no idea why inflation is limited to a basket of goods. It seems trivial to just measure the cost of everything everywhere.
